8 Reasons Company Strategies Don't Succeed

 

[Editor's Note: Almost 2/3 of all strategies fail to reach expectations. Why do so many business strategies fail? Below are some key reasons. Knowing the barriers in your organization to successful planning and execution is the first step. Clients that follow our recommendations have significantly outperformed the competition. We like to say, "A good plan, well-   executed, beats a great plan, poorly executed, every time."  Contact us if you would like more information.   [dpm]      1. No buy-in up and down the organization. Many times strategic planning exercises are met with a collective organizational "eye roll." "We've been here before, but nothing really changes." So they duck their heads down and wait for it to blow over.  2. No clear definition of success   Fuzzy goals lead to fuzzy outcomes. While it seems obvious, many organizations simply don't articulate the specific goal of a business strategy. If the goal of your customer intimacy strategy is to form deeper customer relationships, that's fuzzy. If the goal is to increase customer retention by 10 percent and increase annual revenue per customer by $10,000 and net profit by $1,000, that's clear. Here, deeper customer relationships may be the mechanism to achieve the goal.  3. Too many goals   When everything is a priority, nothing gets accomplished. Many so-called strategic plans have too many goals, objectives, success drivers, strategies, initiatives and so on. Worse, it's not clear how these various appendages are linked. Is it any surprise these plans sit on shelves and collect dust? Choose to do fewer things much better.  4. Metrics and Alignment - Either no metrics or vague metrics  Many plans are simply a brainstormed list of things to get done by unspecified people at indeterminate times. A plan with specifics will outline who - will do what - by when. It takes into account the sequencing and timing of tasks, activities and resources. Make certain that the goals of everyone in the organization are aligned to the few key objectives. Mead Consulting's process involves supporting strategies in each function that support the organization's key strategies.  5. Visibility - Progress isn't measured and managed  Ever notice how plans placed in the spotlight flourish while those left in the dark shrivel? Any plan worth executing is worth tracking. A monthly meeting with a tight agenda can quickly determine what actions have been taken; what progress has been made; what will be accomplished over the next month and by whom, and what, if any, challenges have emerged. This builds commitment, accountability and confidence in the process.  6. You lack the right people  Some of those nice people who work for you may not be the right people to get the job done. That statement makes you uncomfortable, doesn't it? Many have been loyal, are committed to the culture, and may be friends and family. However, If you are truly committed to winning, or achieving success - however you define it - then at some point you have to take a long, hard, honest look at the capabilities of your people. Point them in the right direction, support them, develop them - give them a fair chance to succeed. But if they can't get it done, then your responsibility is to get people who can.  7. Flexibility - Failure to update the plan to stay real   Reserve the right to do what makes sense. Plans are based on assumptions that can change over time. If they do change, then the plan may need to change. A quarterly "recalibration" meeting is a good forum to test your assumptions and determine which, if any, have changed. The meeting may result in either a re-validation or redesign of the plan. It ensures the plan stays real and relevant.  8. Reaction to Failure - Failure is met with indifference or an inquisition  Is your team serious about its definition of success? Your response to failure sends a clear message about your commitment to winning. Just as importantly, it sends a message about your credibility. Do you ignore a failed initiative and move on to the next big thing (which conveys that you really weren't that committed and you shouldn't be taken seriously)? Do you look for scapegoats (which communicates that you don't take personal responsibility and can't be trusted)? Or do you first look in the mirror, take responsibility, then publicly commit to getting it right, and effectively engage your people to make it happen? Your choice speaks volumes about who you are as a leader.  Where does your organization stand? Mead Consulting Group's process begins with the identification of the barriers and obstacles to successful planning and execution. These "barriers" develop in ALL companies over time. In fact, some of the very things that help a company succeed at early levels will prevent them from succeeding at the next level. The key is to address these barriers so that the path is uncluttered.  For more information on the process to both successful planning AND execution, please contact me at meaddp@meadconsultinggroup.com or (303)660-8135. Best regards, Dave Mead

Overcoming Barriers to Planning and Execution -Barrier#3: History of unreasonable expectations & unachievable goals

 [Editor's Note: In Issues for Growth Vol. 31, No.11, we asked the question, "Are there barriers blocking your successful growth and execution?" We then listed the Barriers to succesful Planning and the Barriers to succesful Execution.We are continuing a series of Issues for Growth where we will tackle each of these barriers and identify ways to overcome each. We continue with Barrier #3. -dpm]

Overcoming Barriers to Planning and Execution -Barrier#3: History of unreasonable expectations & unachievable goals

Over time, every organization will create barriers to success. The very things that made you successful as a startup or growing organization may prevent you from being successful at the next level.



Barriers to Planning Success

•          History of only partially developing plans
•          History of unreasonable expectations and unachievable goals
•          Lack of internal understanding about customers, competitors, and the market

 

Barriers to Execution Success

•          Gaps in management depth
•          History of abandoning projects
•          History of lack of openness and poor communications
•          History of poor delegation and leadership development
•          Lack of true accountability

Barrier#3: History of unreasonable expectations & unachievable goals

Again as stated- Many business owners and senior managers are brimming with creative ideas. Some time ago, we were asked by a business owner of a $75MM business to "validate" the company's new strategic plan. There were 14 initiatives on an 11x14 sheet - with small font. All initiatives had year one deadlines. This was a company that had not grown significantly in several years, had a thin management team, and there was no plan to significantly increase resources. What could go wrong with this picture?

What are the characteristics of this barrier in an organization?

• Too many ideas; Too many goals
• Unrealistic deadlines
• Every goal is a BHAG( Big Hairy Audacious Goal) 
• Each senior manager has a different set of priorities - No consensus on focus    

      

So one quarter, an organization is headed in one direction, and then abruptly next quarter, stop doing that - there is a new, "better" direction. Some times it is the tendency to chase the next "shiny rock"; in others, it's the CEO listening to another business owner in a peer group that has a "better" idea.

The impact on an organization is an organizational "eye roll." It's great to set a BHAG (Big Hairy Audacious Goal) for the organization. But too many strategies and goals overwhelm an organization and every person thinks "another rabbit hole; this won't work; here we go again!"

Overcoming this barrier - No more than 3 strategies

Overcoming this barrier is relatively straightforward. Going through a facilitated structured planning process can ensure that an organization is focused on a few priorities that can really move the company. We have found that organizations that develop 3 strategies - with clear action plans to achieve the desired results - are far more successful than organizations with 10 or 14 strategies and initiatives.

Develop a "What we are not going to do now" list. The most difficult thing for many companies to do is prioritize. Even more difficult is to establish a list of projects or strategies that will not get done now, - and to stick to that list. Smart companies will insist that in order to take something off the "Not Now" list, they must take something off the "Do Now" list.

Identifying the barriers to planning and execution is critical. Companies that have addressed the barriers are amazed at how much more their management teams are engaged and how the process energizes the entire organization. CEOs of companies that have had years of poor planning and execution history, find that their organizations are far more capable than they ever imagined of achieving superior results.

The Mead Consulting Group has helped many companies identify and overcome the barriers to successful planning and execution. Our Customer Forward TM Strategic Growth & Execution process is simple and effective at uncovering the key obstacles and barriers and developing recommendations for improvement - then laying out the best strategic path.

If you would like to have a conversation about this, please contact Dave Mead at (303)660-8135 or meaddp@meadconsultinggroup.com. 

Is Accountability a Problem in My Organization?

[Editor's Note: For over 25 years, Mead Consulting has been conducting assessments at client companies to identify barriers and challenges to growth to the next level. Lack of true accountability continues to be the most frequent issue. I thought it might be useful to address accountability in this article. If you are beginning your planning cycle, a lack of accountability may sabotage your ability to succeed.             - dpm]

 Is Accountability a Problem in My Organization?

Speaking with a new client, the CEO asked me to identify the most frequent problem we see with our new clients. I responded, "Lack of true accountability." He seemed skeptical and suggested that we wouldn't find that to be true at his company. So I asked him, "Does every employee feel responsible for the company's success and know what their role is in ensuring that success?" 

It occurs to me that people have become numb to the meaning of the word, accountability, and that it always seems to apply to everyone else, some other department, etc. -"They need to be more accountable for results."

What are some of the attributes in an organization lacking accountability?

Do any of the following look familiar?

Unclear Vision and Direction: Employees do not know the keys to company success - or they all have different views as to what they are.

o Goals may be unclear, confusing, or there are too many different goals

o "We keep adding initiatives and projects and never take anything off the list."

Micromanaging or Command and control: Employees do not feel they have control over how to deliver results

Lack of Job Understanding or Training: "I have never been shown what is expected"; "I didn't receive any training"

"I don't know where to go for help"

Undervalued: "No one cares about my opinion." People do not feel their opinion is valued - that is, every employee

People do not feel comfortable delivering bad news such as the "project is behind schedule" or "we have a major quality problem." So they ignore or sugarcoat things.

People do not feel trusted.

o "I am not confident my efforts will be rewarded"

o "I suspect that my manager (or the company leader) may take advantage of me"

o "I question my manager's (or the company leader's) motives"

o "I am sure they will take credit for my accomplishments"

Departments do not cooperate with each other. We constantly practice the "blame game"

Employees are Not Engaged - "People do just enough to get through the day."

Lack of accountability can paralyze an organization.         

Be honest. Do you recognize any of the above in your company? On the long personal and organizational "to do" list, accountability should be at the top of the list. Lack of accountability can paralyze an organization and prevent it from moving forward. If you see a fatal flaw in yourself, your current leaders, or your organization in any of the above, you should address it immediately. We can help.

The Mead Consulting Group has been helping clients develop and execute Strategic Growth & Execution plans for many years. Check out our website for descriptions of some client success stories.

The Continuing Quest for Accountability - Part IV - Top 5 Accountability Pitfalls

[Editor's Note: True Accountability can be the biggest impediment to strong results in a company. In Parts I and II in this series , we asked the questions: "Is a Lack of Accountability a Problem in My Organization?" and "Am I Part of the Accountability Problem in My Company?" In Part III, we addressed "Starting Down the Path to Greater Accountability"  In this issue, we outline the top 5 accountability pitfalls that can kill company performance. I hope you find this useful. -dpm]

The Continuing Quest for Accountability - Part IV

Top 5 Accountability Pitfalls

When people are held accountable - to themselves and their stakeholders - good things get done. According to Steve Tobak of Moneywatch, here are the top five "accountability" pitfalls that business leaders and executives typically fall into, in my experience. Some of them don't even appear to be accountability-related on the surface, which is why they're so insidious. If you want a high-performance management team, make sure you avoid them:

Unclear responsibility. Misalignment of Goals. This is probably the most common pitfall. Show me an organization and I'll show you managers with misaligned goals and vague responsibility. Two people shouldn't have the same functional responsibility or own the same goal. If you do that, you're asking for things to fall in the crack. That doesn't preclude "matrix management"; the trick is to ensure goals and responsibilities are properly aligned. It can be done.

No follow up. Poor execution. This is practically an epidemic in organizations. Executives are great at coming up with goals, strategies, even metrics. Unfortunately, they're also notoriously bad at following up. I don't care how driven and entrepreneurial executives are; without follow up, nothing good happens. Companies must have a relatively objective and, sorry to say this, strict process for both setting and scoring management performance metrics.

Compensation plans that reward poor performance. Closely related to the "no follow up" problem, most companies have terrible executive compensation plans. Maybe 1 in 10 actually rewards the right behavior and has enough teeth to foster accountability. The problem? The bar for making gobs of money is set too low, and there's not enough difference between success and failure, plain and simple.

Management bad behavior. When it comes to management behavior, most executives and boards just look the other way. That lack of accountability plays a key role in business failures because dysfunctional leadership results in bad strategic decision-making and poor employee performance and execution. Granted, coming up with metrics for this sort of thing is challenging, but I think "360s" are pretty effective. 

Flawed company strategy. This is rarely seen as an accountability problem, but it is. When company executives push a flawed strategy, two things inevitably happen. First, smart people in the organization call them on it - publicly or privately - word gets around, and management credibility suffers, big-time. Second, folks will start covering their behinds, pointing fingers, acting passive aggressively - all sorts of dysfunctional behavior that wreaks havoc with organizational performance.Not surprisingly, I find that management teams at consistently successful companies make accountability a priority and, therefore, avoid these pitfalls. It take a real commitment of precious management time and resources. But not only is the payoff worth it, it's a necessity in our hypercompetitive business world. 

________

This may sound strange coming from a firm that stresses strategic growth and execution, but it will do little good to establish strategies, action plans, and metrics without accountability. Because - without accountability, the results will be more of the same - disappointing results. The data shows that companies with true accountability greatly outperform those with a lack of accountability. Don't let another year go by. Neglecting the next steps in your company's growth and maturity can be very short-sighted. The next downturn is coming - possibly starting as early as Q4 of 2019. Get prepared. You need to have your company firing on all cylinders. 

Need help? The Mead Consulting Group has helped many companies achieve greater accountability...and better results.  Contact me to discuss how we can help you do things a bit differently this next year.